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Press release content from Business Wire. The AP news staff was not involved in its creation.

Pinnacle Bancshares Announces Results for First Quarter Ended March 31, 2021

April 15, 2021 GMT

JASPER, Ala.--(BUSINESS WIRE)--Apr 15, 2021--

Robert B. Nolen, Jr., President and Chief Executive Officer of Pinnacle Bancshares, Inc. (OTC Pink: PCLB), today announced Pinnacle’s results of operations for the first quarter ended March 31, 2021:

  • For the three months ended March 31, 2021, Pinnacle reported net income of $907,000, compared to $841,000 for the three months ended March 31, 2020. Included in net income for the first quarter 2020 was approximately $120,000 gain on sale of securities, net of tax. These were no such gains recorded during the first quarter 2021.
  • Net interest income after the provision for loan losses for the three months ended March 31, 2021, was $2,379,000, compared with $2,022,000 in the same period last year.
  • Included in net interest income for the three months ended March 31, 2021 are Paycheck Protection Program (“PPP”) amortized loan fees of approximately $141,000. There were no PPP amortized loans fees recorded for the three months ended March 31, 2020.
  • For the three months ended March 31, 2021, basic and diluted earnings per share were each $0.93. For the same period in 2020 basic and diluted earnings per share were each $0.82.
  • For the three months ended March 31, 2021, return on average assets was 1.26%, compared to 1.39% in the comparable 2020 period.

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The Company’s net interest margin was 3.61% for the three months March 31, 2021, compared to 3.68% for the three months ended March 31, 2020.

At March 31, 2021, Pinnacle’s allowance for loan losses as a percent of total loans was 1.92%, compared to 2.13% at December 31, 2020. Excluding PPP loans of $10.7 million dollars and $6.4 million dollars, the allowance for loan losses as a percent of total loans as of March 31, 2021 and December 31, 2020, was 2.10% and 2.26%, respectively. At March 31, 2021, the allowance for loan losses as a percent of nonperforming loans was 1979.83%, compared to 1833.08% at December 31, 2020. Nonperforming assets were $119,000 at March 31, 2021, compared to $130,000 at December 31, 2020. The ratio of nonperforming assets to total loans was .10% at March 31, 2021, and .12% at December 31, 2020.

Pinnacle was classified as “well capitalized” at March 31, 2021. All capital ratios are significantly higher than the requirements for a well-capitalized institution.

Dividends of $.22 per share were paid to shareholders during the first quarter of 2021 and $.19 per share during the first quarter 2020.

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As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which are likely to negatively impact the Company. The extent of COVID-19’s impact on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, the virus’ impact on the Company’s customers, employees and vendors, and vaccination supply and delivery. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations remains uncertain.

Forward-Looking Statements

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Pinnacle undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Pinnacle’s expectations. Certain tabular presentations may not reconcile because of rounding.

Pinnacle Bancshares, Inc.’s wholly owned subsidiary Pinnacle Bank has seven offices located in central and northwest Alabama.

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED FINANCIAL HIGHLIGHTS

 

 

Three Months Ended March 31,

 

2021

 

2020

Net Income

$

907,000

 

$

841,000

 

Weighted average basic shares outstanding

 

973,505

 

 

1,019,389

 

Weighted average diluted shares outstanding

 

973,505

 

 

1,019,389

 

Dividend per share

$

.22

 

$

.19

 

Provision for loan losses

$

-

 

$

-

 

Basic and diluted earnings per share

$

0.93

 

$

0.82

 

Performance Ratios: (annualized)

 

 

Return on average assets

 

1.26

%

 

1.39

%

Return on average equity

 

11.90

%

 

11.44

%

Interest rate spread

 

3.51

%

 

3.45

%

Net interest margin

 

3.61

%

 

3.68

%

Operating cost to assets

 

2.33

%

 

2.64

%

 

 

 

 

 

 

(Audited)

 

March 31, 2021

 

December 31, 2021

Total assets

$

306,731,000

 

$

275,742,000

 

Loans receivable, net

$

120,325,000

 

$

109,429,000

 

Deposits

$

269,186,000

 

$

235,109,000

 

Brokered CD’s included in deposits

$

14,980,000

 

$

14,980,000

 

Total stockholders’ equity

$

32,100,000

 

$

34,332,000

 

Weighted average book value per share

$

32.97

 

$

34.63

 

Total average stockholders' equity to asset ratio

 

10.60

%

 

11.15

%

Asset Quality Ratios:

 

 

Nonperforming loans as a percent of total loans

 

.10

%

 

.12

%

Nonperforming assets as a percent of total loans

 

.10

%

 

.12

%

Allowance for loan losses as a percent of total loans

 

1.92

%

 

2.13

%

Allowance for loan losses as a percent of nonperforming loans

 

1979.83

%

 

1833.08

%

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION

 

 

 

 

 

 

 

(Unaudited)

 

(Audited)

 

 

March 31,

 

December 31,

 

 

2021

 

2020

Assets

 

 

Cash and cash equivalents

$

2,041,243

 

$

2,080,667

 

Interest bearing deposits in banks

 

15,009,497

 

 

4,106,661

 

Securities available for sale

 

148,848,166

 

 

139,688,995

 

Restricted equity securities

 

716,000

 

 

785,500

 

 

 

 

Loans

 

122,681,575

 

 

111,811,886

 

Less allowance for loan losses

 

2,356,076

 

 

2,382,799

 

Loans, net

 

120,325,499

 

 

109,429,087

 

 

 

 

Premises and equipment, net

 

6,921,375

 

 

6,555,446

 

Operating right-of-use lease assets

 

564,271

 

 

587,970

 

Goodwill

 

306,488

 

 

306,488

 

Bank owned life insurance

 

10,394,843

 

 

10,296,876

 

Accrued interest receivable

 

1,183,362

 

 

1,491,026

 

Other assets

 

419,832

 

 

413,613

 

Total assets

$

306,730,576

 

$

275,742,329

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

Deposits:

 

 

Noninterest-bearing

$

83,755,806

 

$

72,897,929

 

Interest-bearing

 

185,430,659

 

 

162,210,802

 

Total deposits

 

269,186,465

 

 

235,108,731

 

 

 

 

Subordinated debentures

 

3,093,000

 

 

3,093,000

 

Accrued interest payable

 

123,194

 

 

145,826

 

Operating lease liabilities

 

564,271

 

 

587,970

 

Other liabilities

 

1,663,469

 

 

2,474,936

 

Total liabilities

 

274,630,399

 

 

241,410,463

 

 

 

 

Stockholders’ equity

 

 

Common stock, $.01 par value, 2,400,000 shares authorized; 1,872,313 shares issued; 973,505 shares outstanding

 

18,723

 

 

18,723

 

Additional paid-in capital

 

8,923,223

 

 

8,923,223

 

Treasury stock, at cost (898,808 shares)

 

(13,441,345

)

 

(13,441,345

)

Retained earnings

 

35,566,853

 

 

34,874,072

 

Accumulated other comprehensive income, net of tax

 

1,032,723

 

 

3,957,193

 

Total stockholders’ equity

 

32,100,177

 

 

34,331,866

 

 

 

 

Total liabilities and stockholders’ equity

$

306,730,576

 

$

275,742,329

 

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

 

 

2021

 

2020

Interest income

 

 

Loans, including fees

$

1,538,243

$

1,431,258

Taxable securities

 

912,113

 

749,227

Nontaxable securities

 

58,493

 

106,123

Other interest

 

5,632

 

19,132

Total interest income

 

2,514,481

 

2,305,740

 

 

 

Interest expense

 

 

Deposits

 

97,172

 

240,037

Borrowings and repurchase agreements

 

-

 

3,330

Subordinated debentures

 

38,500

 

40,100

Total interest expense

 

135,672

 

283,467

 

 

 

Net interest income

 

2,378,809

 

2,022,273

Provision for loan losses

 

-

 

-

Net interest income after provision for loan losses

 

2,378,809

 

2,022,273

 

 

 

Other income

 

 

Fees and service charges on deposit accounts

 

346,188

 

365,647

Servicing fee income, net

 

1,059

 

1,423

Bank owned life insurance

 

97,967

 

94,186

Mortgage fee income

 

2,487

 

12,006

Net gain on sale of securities available for sale

 

-

 

152,658

Total other income

 

447,701

 

625,920

 

 

 

Other expenses

 

 

Salaries and employee benefits

 

958,973

 

940,542

Occupancy expenses

 

222,144

 

201,705

Marketing and professional expenses

 

64,637

 

59,246

Other operating expenses

 

432,901

 

389,240

Total other expenses

 

1,678,655

 

1,590,733

 

 

 

Income before income taxes

 

1,147,855

 

1,057,460

 

 

 

Income tax expense

 

240,903

 

216,849

 

 

 

Net income

$

906,952

$

840,611

 

 

 

Basic and diluted earnings per share

$

0.93

$

0.82

 

 

 

Cash dividends per share

$

0.22

$

0.19

Weighted-average basic and diluted shares outstanding

 

973,505

 

1,019,389

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

Total

 

 

Common Stock

 

Paid-in

 

Treasury

 

Retained

 

Comprehensive

 

Stockholders’

 

 

Shares

 

Par Value

 

Capital

 

Stock

 

Earnings

 

Income (Loss)

 

Equity

 

 

 

 

 

 

 

 

Balance, December 31, 2012

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(11,730,888

)

 

$

32,445,916

 

 

$

1,130,578

 

 

$

30,787,552

 

Net income

-

 

 

-

 

 

-

 

 

-

 

 

 

840,611

 

 

 

-

 

 

 

840,611

 

Cash dividends declared, $0.19 per share

-

 

 

-

 

 

-

 

 

-

 

 

 

(194,354

)

 

 

-

 

 

 

(194,354

)

Purchase of treasury stock

-

 

 

-

 

 

-

 

 

(1,173,412

)

 

 

-

 

 

 

-

 

 

 

(1,173,412

)

Other comprehensive loss

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(2,149,147

)

 

 

(2,149,147

)

Balance, March 31, 2020

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(12,904,300

)

 

$

33,092,173

 

 

$

(1,018,569

)

 

$

28,111,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2020

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(13,441,345

)

 

$

34,874,072

 

 

$

3,957,193

 

 

$

34,331,866

 

Net income

-

 

 

-

 

 

-

 

 

-

 

 

 

906,952

 

 

 

-

 

 

 

906,952

 

Cash dividends declared, $0.22 per share

-

 

 

-

 

 

-

 

 

-

 

 

 

(214,171

)

 

 

-

 

 

 

(214,171

)

Other comprehensive loss

-

 

 

-

 

 

-

 

 

-

 

 

 

-

 

 

 

(2,924,470

)

 

 

(2,924,470

)

Balance, March 31, 2021

1,872,313

 

$

18,723

 

$

8,923,223

 

$

(13,441,345

)

 

$

35,566,853

 

 

$

1,032,723

 

 

$

32,100,177

 

PINNACLE BANCSHARES, INC.

AND SUBSIDIARY

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2021 and 2020

 

 

 

 

 

 

 

2021

 

2020

OPERATING ACTIVITIES

 

 

Net income

$

906,952

 

 

$

840,611

 

Adjustments to reconcile net income to net cash

 

 

 

provided by operating activities:

 

 

 

Depreciation

 

103,599

 

 

 

95,319

 

Net amortization of securities

 

81,760

 

 

 

67,250

 

Gain on sale of securities available for sale

 

-

 

 

 

(152,658

)

Bank owned life insurance

 

(97,967

)

 

 

(94,186

)

Decrease in accrued interest receivable

 

307,664

 

 

 

197,846

 

Increase (decrease) in accrued interest payable

 

(22,632

)

 

 

5,055

 

Net other operating activities

 

539,307

 

 

 

(444,397

)

Net cash provided by operating activities

 

1,818,683

 

 

 

514,840

 

INVESTING ACTIVITIES

 

 

 

Net increase in loans

 

(10,896,412

)

 

 

(143,420

)

Net increase in interest-bearing deposits in banks

 

(10,902,836

)

 

 

(1,091,768

)

Purchase of securities available for sale

 

(19,626,046

)

 

 

(21,737,575

)

Proceeds from sales of securities available for sale

 

-

 

 

 

2,732,970

 

Proceeds from maturing or callable securities available for sale

 

6,103,652

 

 

 

4,623,758

 

Net redemption of restricted equity securities

 

69,500

 

 

 

34,000

 

Purchase of premises and equipment

 

(469,528

)

 

 

(180,984

)

Net cash used in investing activities

 

(35,721,670

)

 

 

(15,763,019

)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Net increase in deposits

 

34,077,734

 

 

 

17,090,449

 

Purchase of treasury stock

 

-

 

 

 

(1,173,412

)

Payments of cash dividends

 

(214,171

)

 

 

(194,354

)

Net cash provided by financing activities

 

33,863,563

 

 

 

15,722,683

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(39,424

)

 

 

474,504

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

2,080,667

 

 

 

1,814,912

 

 

 

 

 

Cash and cash equivalents at end of year

$

2,041,243

 

 

$

2,289,416

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE

 

 

 

Cash paid during the year for:

 

 

 

Interest

$

158,304

 

 

$

278,412

 

Taxes

$

-

 

 

$

402,131

 

OTHER NONCASH TRANSACTIONS

 

 

 

Real estate acquired through foreclosure

$

-

 

 

$

-

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210415006022/en/

CONTACT: Joe B. Adams, III

Chief Financial Officer

(205) 221-8866

KEYWORD: UNITED STATES NORTH AMERICA ALABAMA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES

SOURCE: Pinnacle Bancshares, Inc.

Copyright Business Wire 2021.

PUB: 04/15/2021 04:15 PM/DISC: 04/15/2021 04:15 PM

http://www.businesswire.com/news/home/20210415006022/en